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On February 6, 2026, the White House issued an executive order (EO) establishing an “America First Arms Transfer Strategy,” recalibrating U.S. policy governing Foreign Military Sales (FMS) and Direct Commercial Sales (DCS) opportunities.1 The Strategy explicitly links defense export decisions to the strength, scale, and resilience of the U.S. defense industrial base. Under the Strategy, U.S. arms transfer decisions will be guided by a new prioritization framework that favors foreign partners deemed strategically important to U.S. national security and those that demonstrate sustained investment in their own defense capabilities.
The EO directs the Departments of War, State, and Commerce to undertake coordinated implementation actions over the coming months, including developing a prioritized sales catalog of U.S. defense articles and services available for export, increasing structured engagement with U.S. industry, and identifying opportunities to leverage FMS and DCS to expand U.S. production capacity and technological leadership. The EO also calls for reforms to existing arms transfer processes, including establishing an end-use monitoring coordination group, revising third-party transfer procedures, streamlining Congressional notifications, and establishing the Promoting American Military Sales Task Force.
For defense manufacturers and exporters, the Strategy signals increased opportunities through a more centralized and policy-driven approach to arms transfers. Export licensing, FMS prioritization, and oversight processes are likely to evolve as agencies implement new criteria tied to strategic alignment and industrial base considerations. Companies should expect increased government signaling around preferred markets and platforms, alongside heightened expectations regarding compliance, monitoring, and coordination with U.S. government stakeholders.
Key Takeaways for Industry and Compliance Teams
- Arms transfers will increasingly be evaluated through a strategic prioritization lens, not solely based on customer demand or historical practice.
- A forthcoming prioritized sales catalog and enhanced industry engagement may provide clearer insight into U.S. government export preferences, creating both opportunities and competitive differentiation for industry participants.
- Compliance and oversight expectations are likely to expand, particularly with respect to end-use monitoring and post-delivery obligations.
- The Strategy seeks to simplify third-party transfers, potentially impacting reexport requirements.
- Companies should prepare for greater interagency coordination.
Footnote
1. The Foreign Military Sales program is a form of security assistance whereby the U.S. Government sells defense articles and services to foreign countries and international organizations. Direct Commercial Sales involve direct contractual arrangements between a U.S. company and a foreign government, international organization, or foreign company.
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